The VW that out-sips a Prius

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One of the less pie-in-the-sky concepts of this year’s Geneva International Motor Show (although the Rinspeed sQuba car was rather cool) is this VW Golf TDI Hybrid.

This version of the Golf (a model known as the Rabbit over here) uses an electric motor system similar to that of the Toyota Prius but mates that to a clean and frugal 1.2-liter, three-cylinder diesel-powered engine. Bottom line, in a European fuel economy test cycle, the Prius achieves 54 miles per gallon. This VW could get 69, an improvement of about 28%.

VW says a hybrid diesel car might make it into production in the near future — for the European market. Its U.S. debut looks a little farther off, however. That’s because federal emissions laws are tougher, so more effort has to go into making diesel engines cleaner. This is reflected in sticker prices. According to VW, its 2009 diesel Jetta will sell for $2,000 more than a gasoline-powered equivalent model.

Another factor that might make the American buyer wary is resale value. A conventional diesel-powered car keeps its value pretty well (because its engine generally has greater longevity), whereas a hybrid tends to depreciate somewhat faster than a mainstream model. A marriage of the two will have an outcome no one can predict.

As drivers become more familiar with new technologies and learn to embrace them, these obstacles should sort themselves out. If diesel’s popularity continues to rise, more oil-burning cars will be made, production costs will decline and companies can price their products at more tempting levels.

— Colin Ryan